CRC.L Regulatory News (CRC)

4 Apr 2006 16:49

Immediate Release 4th April 2006 COPPER RESOURCES CORPORATION NEW MINERAL RESOURCE ESTIMATE REPORTED TO JORC-STANDARD AND AN EXCITING EXPLORATION TARGET IS HIGHLIGHTED AT 5.1% KINSENDA DEPOSIT LONDON, United Kingdom - 4 April 2006.FinOre Mining Consultants ("FinOre") of Perth, Australia have completed a newMineral Resource estimate that upgrades previous estimates by MiniĬre deKinsenda et Musoshi sral ("MMK"), a 75%-owned Congolese (DRC) subsidiary ofCopper Resources Corporation (AIM: CRC.L) ("CRC"), to "Measured and Indicated",as follows:Category Tonnes of Ore Cu% Cu Metal Measured 13,080,000 4.8% 632,000 Indicated 4.060,000 5.8% 234,500 Measured and Indicated 17,140,000 5.1% 866,500 The new FinOre Mineral Resource estimate is an important improvement in theKinsenda resource picture because the earlier MMK estimates were not reportedin accordance with the JORC or SAMREC Codes.In addition, FinOre has identified a significant exploration target,immediately to the south and southwest of the known Kinsenda resource, wheredrilling has intersected mineralization in a down faulted block. FinOreconsiders that this exploration target could contain between 10-15 milliontonnes at a range of grades of 3% - 7% copper (0.3m tonnes to 1.0m tonnes of copper metal). It is important to note that this target area is stillconceptual in nature and MMK will need to undertake further drilling to testthe potential of this significant target. Two drill holes in the target areato-date show the highest grade intersections of the entire Kinsenda deposit,8.3% and 8.5% copper having true widths up to 6m.Christopher Jordinson, CRC Chief Executive Officer stated: "The upgrade in theclassification of Kinsenda resources to the Measured and Indicated categoriesand the simultaneous identification of the major new block exploration targetis exciting news for CRC as it could potentially double the life of theKinsenda mine at currently planned mining rates, or could allow a largeincrease in planned production."The FinOre Mineral Resource estimate has been reported according to theAustralasian JORC and South African SAMREC Codes and is therefore suitable forpublic reporting. It was completed under the overall supervision and directionof Mr Gerry Fahey, who is a Competent Person under the JORC and SAMREC Codes,and who consents to the inclusion in this press release of the matters based onthis information in the form and context in which they appear. In addition, thefollowing Competent Persons were involved in preparing the FinOre estimate:--Mr Richard Holmes, FinOre Senior Consultant, responsible for the resourceestimation and statistical analysis.--Dr Simon Dorling, CSA Senior Consultant responsible for the site visitdue-diligence and geological interpretation work.--Mr Lynn Widenbar, Widenbar and Associates responsible for variographystudies.FinOre, CSA and Widenbar and Associates are not shareholder in CRC or anyassociated party. Copper Resources Nabarro Wells & Co. Westhouse GTH Corporation Securities Communications Mitchell Alland Keith Smith Richard Morrison Toby Hall Executive Vice Chairman +44 (0) +44 (0) +44(0) +44 (0) 77 4801 8690 20 7710 7400 20 7601 6100 20 7153 8035 BACKGROUND: THE KINSENDA PROJECT FEASIBILITY STUDYThe FinOre Mineral Resource estimate complements the recently preparedindependent Feasibility Study by Mineral Engineering Technical Services Pty Ltd(METS), which concluded that operations at Kinsenda can be restarted within 18months at an estimated capital cost of US$38 million. The projected financialreturn to CRC is highly favourable with an estimated IRR of 67% and NPV ofUS$143 million, at an assumed long term copper price of US$1.25/lb and adiscount rate of 10%. The high financial rate of return reflects the extremelyhigh grade of Kinsenda's reserves coupled with the project's low capital costs.The Feasibility Study assumes an annual treatment of 1.2 million tonnes of ore,resulting in production of 54,000 tonnes per annum of contained copper in theform of a rich, 45% concentrate at an average total cash operating cost ofUS$0.68/lb. The Kinsenda deposit will permit 13 years of operations at fullcapacity based on the current reserves.The Kinsenda and Musoshi deposits were mined from 1968-1983 by a Japanesemining consortium, then by Canadian management on behalf of the Zairiangovernment from 1983-1987, and subsequently by Gecamines, a Congolese statemining company. Kinsenda and Musoshi are both currently flooded and requiredewatering prior to restarting operations. A third property, at Lubembe, is agreen field exploration play with high potential.The remaining 25% of MMK not owned by CRC is held 20% by SODIMICO, a statecompany, and 5% by the Forrest Group, the largest private business in Katangaand one of the largest in the DRC with diversified operations includingmining, engineering, con-struc-tion, and cement. Operating successfully in theDRC since 1922, the Forrest Group has extensive operational and managementexperience in the country that will support and facilitate CRC's effort indeveloping the properties.The Feasibility Study was prepared by METS, a Perth-based (Australia) miningengineering consultancy firm that is not a shareholder in CRC or any associatedparty. It has been prepared on a professional basis using qualified andexperienced engineers working in accordance with CRC's scope of work. METS'sstudies are recognized and accepted by financial institutions working in theresource sector.COPPER RESOURCES CORPORATION